HSBC Global Asset Management has launched a Global Inflation Linked Bond fund that invests in a diversified portfolio of sovereign inflation-linked bonds issued by OECD countries such as Australia, Canada, Sweden, UK, US, Japan and some countries in the Eurozone.

Managed by HSBC Global Asset Management’s quantitative based fixed income team led by Jean-Charles Bertrand, Chief Investment Officer, Quantitative Strategies, the HSBC GIF Global Inflation Linked Bond fund follows a quantitative management approach to inflation linked bonds. HSBC Global Asset Management has launched the global ILB strategy through a Luxembourg-based SICAV within HSBC’s flagship Global Investment Funds range.

Bertrand said: “Inflation linked bonds provide the most effective hedge against inflation when compared to other asset classes, including real estate and commodities, as they are the only asset class whose return is directly adjusted to the realised rate of inflation. In addition, inflation linked bonds demonstrate low correlation to nominal bonds, diversify a fixed income portfolio and improve its overall risk-adjusted potential.”